It is “very unlikely” that people in Cryptopia hack will be caught, the leader in blockchain security.

Michael Oh, CEO of the Taiwanese company CoolBitX , said that even if the hackers are arrested, the return of stolen funds may become overly expensive and complex process.

In the email OU added that, despite the joint efforts of other exchanges on the freezing of funds, theft of Cryptobia is likely to retain most of the stolen cryptocurrency.

“Despite the efforts of exchanges to identify and freeze stolen funds as quickly as possible, it is unlikely that these criminals will ever be caught”, — wrote U.

“And even if the perpetrators are caught or actually frozen and are legal entities, the process of returning the Air to its original owners is likely to be a long and difficult process for all parties.”

Binns freezes assets

Cryptobia found what she called a”significant security breach” early Monday morning. The new Zealand exchange, which before the invasion had daily trading volume of about $ 2 million, then warned users Tuesday morning. Current estimates suggest that the hackers stole the Ether (ETH) and CENNZ in the amount of 3.4 million dollars , as well as other tokens.

Cryptobia raised questions in the past. In early November, the cryptocurrency gold plated AurumCoin (AU) claimed that the exchange was an accomplice in the attack by 51%. Tokens for 16 million Australian dollars — then worth about $ 500,000 — were successfully sold on the trading platform Cryptopia.

Some users on Twitter have accused the exchange in the organization of a security breach ourselves, as a cover for “fraud on exit”. New Zealand police conducting the investigation, does not exclude the possibility of the inner work.

Yesterday, the stolen assets were sent to the wallets Binance, prompting the stock exchange to freeze the funds after users reported it in social networks.

The news Agency was split on this development. Some highlighted this as proof that the sector can effectively control themselves; others wondered why the world’s largest stock exchange have to rely on Twitter users and not on their own surveillance system to detect the stolen funds.

Sir Bitlord ❇@Crypto_Bitlord

I’m genuinely shocked funds stolen from @Cryptopia_NZ have easily passed through @binance UNDETECTED until social media flagged them.

This raises some big questions. 🤔

How is that possible with modern blockchain analysis? 🧐


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Hacking Cryptopia shows that the sector is not yet prepared

Since the break CoinCheck in 2018, the largest in the history of the exchange began to treat security more seriously. Most Depository exchanges store users assets in cold wallets, which are difficult to access. Small sites like Cryptopia, may not have the same protection, making them targets for hackers.

But even large companies, such as Binance, still do not keep track of assets passing through their servers. Perhaps there is the best protection to prevent digital theft, but the sector is still insufficiently prepared to cope with the situation after the event. CoinCheck, for example, had to compensate users of their own pockets.

If history is any guide, it is likely that he is right: cryptophasia hackers are unlikely to be caught, and victims should not be expected that they will again see their money. Meanwhile, the exchange now has the dubious honor of the first break in 2019. The actions of Bianca freezing of the stolen money is commendable, but hardly sufficient to deter future hackers.

Cryptobia may have anticipated this, but that is small comfort for victims of burglary this week — or for the future victims of the next.